5 Dec 2014
US Treasury yields rise as the labor market continues to strengthen in the US
FXStreet (Mumbai) - The yields at the short-end and the long-end of the US bond market curve shot up after the labor market in the US showed huge job additions in November.
The labor department data released today showed Total Non-farm payroll employment increased by 321,000 in November, and the unemployment rate was unchanged at 5.8%. Moreover, today’s print was the tenth straight month of 200+ gains, the longest run since 1995.
Consequently, the yields at the short-end of the treasury market curve shot higher. The 2-yr yield, which mimics short-term interest rate expectation, is now up 8.7 basis points to 0.623%. Meanwhile, 5-yr yield is up 8.7 basis points at 1.674%.
At the long-end, the 10-yr yield has gained 4.8 basis points to trade at 2.305%, while the 30-yr yield has gained 1.2 basis points to trade at 2.973%. Moreover, the yield at the short-end of the curve have shot up more than the ones at the long-end of the curve. This indicates markets may be pricing-in a sooner-than-expected interest rate hike in the US.
The labor department data released today showed Total Non-farm payroll employment increased by 321,000 in November, and the unemployment rate was unchanged at 5.8%. Moreover, today’s print was the tenth straight month of 200+ gains, the longest run since 1995.
Consequently, the yields at the short-end of the treasury market curve shot higher. The 2-yr yield, which mimics short-term interest rate expectation, is now up 8.7 basis points to 0.623%. Meanwhile, 5-yr yield is up 8.7 basis points at 1.674%.
At the long-end, the 10-yr yield has gained 4.8 basis points to trade at 2.305%, while the 30-yr yield has gained 1.2 basis points to trade at 2.973%. Moreover, the yield at the short-end of the curve have shot up more than the ones at the long-end of the curve. This indicates markets may be pricing-in a sooner-than-expected interest rate hike in the US.